Strong support from investors endorses the view that the Goldfields Salt Lakes Project has significant potential for value creation.

The company is now well-funded for initial on-lake infrastructure construction

Salt Lake Potash (ASX:SO4) is raising $13 million via a share placement to both existing and new institutional and sophisticated investors in Australia and overseas, at an issue price of 42 cents per share.

There was very strong demand for the placement, an endorsement of the recent appointment of Tony Swiericzuk as chief executive officer and also of the company’s world-class Goldfields Salt Lakes sulphate of potash (SOP) project in Western Australia.

Proceeds from the placement will be used to fund construction of the Williamson Ponds and dewatering of the Williamson Pit, as well as ongoing development of on-lake infrastructure, exploration and feasibility studies, and general working capital.

Notably, the cornerstone investor for the placement is a significant international investment fund.

Furthermore, directors and senior management intend to subscribe for a total of 2.4 million shares in the placement, including 950,000 shares by Swiericzuk and 750,000 shares by the chairman Ian Middlemas.

Swiericzuk said “We are very pleased to have received such strong support from new and existing shareholders to fund the construction of the initial on-lake infrastructure at Lake Way.

“These activities are on the critical path to enabling SO4 to become the first Australian commercial producer of SOP in a global sector with outstanding potential.

“This strong support from investors endorses our view that the Goldfields Salt Lakes Project has enormous potential for value creation and we now look forward to rapidly delivering on this potential for all shareholders and stakeholders.”

Salt Lake Potash is developing the Goldfields Salt Lakes Project, which we plan to be the most sustainable, most rewarding fertiliser project in the world. An initial 50,000tpa Demonstration Plant will provide the template for a...

Salt Lake Potash is developing the Goldfields Salt Lakes Project, which we plan to be the most sustainable, most rewarding fertiliser project in the world. An initial 50,000tpa Demonstration Plant will provide the template for a very large scale, very long life and very economic project across a number of salt lakes, delivering premium, organic nutrients to the world’s farmers.

The Company plans to produce the premium product Sulphate of Potash (SOP) from extracting hypersaline brine from salt lakes, transporting the brine in a series of solar evaporation ponds to produce potassium-rich harvest salts which can then easily be converted in SOP for the domestic and international markets.

SOP is the premium source of potassium (macro-nutrient) favoured by high value, chloride intolerant crops.

The Company’s long term plan is to develop an integrated SOP operation, producing from a number (or all) of the lakes within the GSLP, after confirming the technical and commercial elements of the Project through construction and operation of a Demonstration Plant producing up to 50,000tpa of SOP.

Salt Lake Potash will progressively explore the lakes in the portfolio with a view to estimating resources for each Lake, in parallel with the development of the Demonstration Plant. Exploration of the lakes will be prioritised based on likely transport costs, scale, permitting pathway and brine chemistry.

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